Definition: The Employee Retirement Income Security Act (ERISA) establishes minimum standards for employee pension and welfare benefit plans offered by private-sector employers.

These minimum standards include requirements relating to disclosure, participation, vesting (the amount of time an employee must be working to be entitled pension), and benefit accrual.

ERISA also regulates how much money should be set aside each year to pay future pensions.

ERISA does not require employers to provide pension plans, however those who do, must follow the regulations created by the act.

Also Known As: ERISA